China Orders Tech Giants to Stop Buying Nvidia AI Chips
China has reportedly told major tech firms like Alibaba, ByteDance, and Tencent to stop buying Nvidia's AI chips and cancel existing orders, according to the Financial Times. The move, led by the Cyberspace Administration of China, targets the RTX Pro 6000D—Nvidia’s chip designed specifically for the Chinese market—and follows earlier guidance against the H20 chip. It's the latest sign that Beijing is doubling down on efforts to cut down on their reliance on US tech and push forward its homegrown alternatives.
The decision comes just days after China accused Nvidia of violating anti-monopoly laws and launched new trade investigations into US semiconductors. Nvidia CEO Jensen Huang said he was "disappointed" but remained "patient," adding, "There are a lot of places we can't go to, and that's fine." Shares of Nvidia dropped more than 1% after the news, with rival AMD also seeing a dip.
China’s regulator reportedly believes domestic chipmakers have now reached a level of sophistication that makes this move viable. Companies like Alibaba and Baidu have already started developing their own AI chips, with Alibaba’s “T-Head” reportedly gaining traction with big clients. As one analyst put it, “Better to bite the bullet now than to rely on US tech that can be restricted upon a whim.”
